The following are not entitled to overtime pay, holiday pay, premium pay on holiday and

rest day, service incentive leave pay, separation pay, 13th month pay.

1. Managerial employees’ vs managerial staffs/supervisors

Managerial employee" is one who is vested with the powers or prerogatives to

lay down and execute management policies and/or to hire, transfer, suspend,
lay-off, recall, discharge, assign or discipline employees. 

Supervisory employees are those who, in the interest of the employer,

effectively recommend such managerial actions if the exercise of such authority
is not merely routinary or clerical in nature but requires the use of independent
judgment.
All employees not falling within any of the above definitions are
considered rank-and-file employees for purposes of this Book.

Article 212(m) of the Labor Code defines a managerial employee as one who is vested with
powers or prerogatives to lay down and execute management policies and/or to hire, transfer,
suspend, lay-off, recall, discharge, assign or discipline employees, or to effectively recommend
such managerial actions.

 Employees are considered occupying managerial positions if they meet all of the
following conditions, namely:

1) Their primary duty consists of management of the establishment in which they are employed
or of a department or subdivision thereof;

2) They customarily and regularly direct the work of two or more employees therein;

3) They have the authority to hire or fire other employees of lower rank; or their suggestions and
recommendations as to the hiring and firing and as to the promotion or any other change of status
of other employees are given particular weight.

 They are considered as officers or members of a managerial staff if they perform the
following duties and responsibilities:

1) The primary duty consists of the performance of work directly related to management policies
of their employer;

2) Customarily and regularly exercise discretion and independent judgment;

3) (i) Regularly and directly assist a proprietor or a managerial employee whose primary duty
consists of management of the establishment in which he is employed or subdivision thereof; or
(ii) execute under general supervision work along specialized or technical lines requiring special
training, experience, or knowledge; or (iii) execute, under general supervision, special
assignment and tasks x x x.
 The test of supervisory or managerial status depends on whether a person possesses
authority to act in the interest of his employer and whether such authority is not
merely routinary or clerical in nature, but requires the use of independent judgment.

 An employee is not bound to accept a promotion, which is in the nature of

a gift or reward. Refusal to be promoted is a valid exercise of a
right.37 Such exercise cannot be considered in law as insubordination, or
willful disobedience of a lawful order of the employer, hence, it cannot be
the basis of an employee's dismissal from service

2. Field Personnels

"Field personnel" shall refer to non-agricultural employees who regularly perform their
duties away from the principal place of business or branch office of the employer and
whose actual hours of work in the field cannot be determined with reasonable certainty.

In deciding whether or not an employee's actual working hours in the field can be
determined with reasonable certainty, query must be made as to whether or not such
employee's time and performance is constantly supervised by the employer.

[field personnel] are those whose performance of their job/service is not

supervised by the employer or his representative, the workplace being away from the
principal office and whose hours and days of work cannot be determined with reasonable
certainty; hence, they are paid specific amount for rendering specific service or
performing specific work. If required to be at specific places at specific times, employees
including drivers cannot be said to be field personnel despite the fact that they are
performing work away from the principal office of the employee,

3. Domestic helpers; Persons in the personal service of another

The term ‘househelper’ as used herein is synonymous to the term ‘domestic servant’ and
shall refer to any person, whether male or female, who renders services in and about the
employer’s home and which services are usually necessary or desirable for the
maintenance and enjoyment thereof, and ministers exclusively to the personal comfort
and enjoyment of the employer’s family.

Persons in the personal service of another e.g. family driver

4. Workers paid by result

two categories of employees paid by results:

(1) those whose time and performance are supervised by the employer. (Here,
there is an element of control and supervision over the manner as to how the
work is to be performed. A piece-rate worker belongs to this category especially
if he performs his work in the company premises. Employer-employee
relationship exist hence can be considered regular entitled to the same benefits);
and
(2) those whose time and performance are unsupervised. (Here, the employer’s
control is over the result of the work. Workers on pakyao and takay basis belong
to this group.)

Hours of work

1. Engaged in waiting/ idle time

Section 1 of Commonwealth Act No. 444, known as the Eight-Hour Labor Law,
provides:

SEC. 1. The legal working day for any person employed by another shall be of not more
than eight hours daily. When the work is not continuous, the time during which the
laborer is not working AND CAN LEAVE HIS WORKING PLACE and can rest
completely, shall not be counted.
Under the law, the idle time that an employee may spend for resting and during
which he may leave the spot or place of work though not the premises2 of his employer,
is not counted as working time only where the work is broken or is not continuous.

2. On call

An employee who is required to remain on call in the employer's premises or so close

thereto that he cannot use the time effectively and gainfully for his own purpose shall be
considered as working while on call. An employee who is not required to leave word at
his home or with company officials where he may be reached is not working while on
call.

3. Assembly time

The thirty (30)-minute assembly is a deeply- rooted, routinary practice of the

employees, and the proceedings attendant thereto are not infected with complexities
as to deprive the workers the time to attend to other personal pursuits. In short, they
are not subject to the absolute control of the company during this period, otherwise,
their failure to report in the assembly time would justify the company to impose
disciplinary measures.

4. Commuting time, travel time at lectures, seminars, etc

Attendance at lectures, meetings, training programs, and other similar activities shall
not be counted as working time if all of the following conditions are met:

(a) Attendance is outside of the employee's regular working hours;

(b) Attendance is in fact voluntary; and

(c) The employee does not perform any productive work during such attendance.
Travel time

While normal travel time from home to work is not worktime, when an employee
receives an emergency call outside of his regular working hours and is required to
travel to his regular place of business or some other work site, all the time spent in
such travel is working time.
Travel time spent by an employee as part of his principal activity.
Travel that keeps an employee away from home is travel away from home which is
clearly worktime when it cuts across the employees workday.

5. meal break, coffee break